Montana Bankruptcy Overview
Montana offers very generous bankruptcy protections including a $350,000 homestead exemption and the ability to choose between state and federal exemptions. Understanding Montana's specific exemption options and requirements is essential for protecting your assets during bankruptcy proceedings.
One significant advantage Montana offers is the choice between state exemptions and federal bankruptcy exemptions—you can select whichever set of exemptions better protects your property. Montana's $350,000 homestead exemption is one of the highest in the nation, making state exemptions particularly attractive for homeowners. This guide covers everything you need to know about filing Chapter 7 or Chapter 13 bankruptcy in Montana.
2026 Montana Median Income for Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy in Montana, your household income must generally be at or below the state median income for your household size.
| Household Size | Annual Median Income |
|---|---|
| 1 Person | $58,425 |
| 2 People | $73,214 |
| 3 People | $86,547 |
| 4 People | $104,825 |
| 5 People | $112,925 |
| 6 People | $121,025 |
| 7 People | $129,125 |
| 8 People | $137,225 |
Note: These figures are updated annually by the U.S. Trustee Program. For households larger than 8 people, add $8,100 for each additional person.
Montana Bankruptcy Exemptions
Montana Homestead Exemption
Up to $350,000.
Montana's homestead exemption is one of the highest in the United States at $350,000 of equity in your primary residence. This was significantly increased in recent years to protect Montana homeowners from rising property values. The exemption applies to houses, condominiums, mobile homes, and any dwelling you use as your principal residence.
Montana Vehicle Exemption
Up to $5,000 in value.
Montana allows you to protect up to $5,000 of equity in one motor vehicle. This is equity—meaning the vehicle's fair market value minus what you owe on any car loans.
Montana Personal Property Exemptions
- Household Goods: Up to $4,500 total for household goods and furnishings
- Clothing and Jewelry: Up to $1,500 total
- Tools of Trade: Up to $5,000 for tools, equipment, and inventory
- Retirement Accounts: Unlimited protection for qualified retirement plans
- Wildcard: Up to $1,300 for any property
Federal Exemptions Alternative: Montana allows you to choose federal exemptions instead of state exemptions. However, with Montana's $350,000 homestead exemption (compared to federal's $27,900), most Montana homeowners benefit significantly from using state exemptions.
Montana Bankruptcy Court
Montana has a single federal bankruptcy court district. The U.S. Bankruptcy Court for the District of Montana has courthouses in multiple cities:
- Butte: 400 North Main Street, Butte, MT 59701 (Main Courthouse)
- Great Falls: 400 2nd Avenue North, Great Falls, MT 59401
- Missoula: 201 East Broadway Street, Missoula, MT 59802
Cost of Filing Bankruptcy in Montana
Court Filing Fees
- Chapter 7: $338
- Chapter 13: $313
Attorney Fees in Montana
- Billings: $1,000 - $1,700 for Chapter 7; $2,700 - $4,000 for Chapter 13
- Missoula: $1,000 - $1,700 for Chapter 7; $2,700 - $4,000 for Chapter 13
- Great Falls: $950 - $1,600 for Chapter 7; $2,600 - $3,900 for Chapter 13
- Bozeman: $1,000 - $1,700 for Chapter 7; $2,700 - $4,000 for Chapter 13
Montana-Specific Considerations
Agricultural and Ranching Property
Montana's economy includes significant agricultural and ranching operations. The $350,000 homestead exemption provides excellent protection for family farms and ranches. Agricultural equipment and livestock may be protected under tools of trade exemptions.
Tourism and Seasonal Work
Montana's tourism economy creates seasonal income fluctuations. The means test accounts for this by using a 6-month income average, and Chapter 13 plans can be structured for seasonal income.
Montana Bankruptcy FAQs
Should I use Montana state exemptions or federal exemptions?
Most Montana homeowners benefit from state exemptions due to the $350,000 homestead exemption. Use state exemptions if you own a home with significant equity. Federal exemptions may be better for renters who can utilize the wildcard exemption.
Can I keep my ranch in Montana bankruptcy?
Yes, if your equity doesn't exceed $350,000. You must continue making mortgage payments if you have a loan. The homestead exemption protects your primary residence regardless of acreage, based solely on equity value.
How long does Chapter 7 bankruptcy take in Montana?
A typical Chapter 7 case in Montana takes about 4-6 months from filing to discharge.
Related Resources
Chapter 7 Bankruptcy
Learn about the Chapter 7 liquidation process and eligibility requirements.
Read Guide →Disclaimer: This guide provides general information about bankruptcy in Montana and should not be considered legal advice. Consult with a licensed Montana bankruptcy attorney for advice specific to your situation.